OSLO: Norway’s annual core inflation rate remained at 3.0 percent year-on-year in September, Statistics Norway (SSB) data showed on Friday, supporting expectations that interest rates will stay elevated.
The core inflation, which strips out changing energy prices and taxes, was in line with the August reading, and slightly below the 3.1 percent expected by analysts in a Reuters poll. Norges Bank had expected core inflation of 2.9 percent.
Norway’s currency, the crown, traded largely unchanged against the euro at 10.72 following the 0600 GMT data release. Norway’s central bank in September raised its policy interest rate to 4.50 percent and said it may hike again to contain consumer prices.
Norges Bank Governor Ida Wolden Bache said at the time that the bank believed it would be necessary to maintain elevated interest rates for a time to come, and that it was prepared to raise them again if the inflation outlook warranted it.
The central bank, which targets core inflation of 2.0 percent, is scheduled to make its next policy rate announcement on November 5.
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